PHOTO BY PAULA MULLER
The property at 2 Washington St. in Peabody, which has been taken over by the city.
BY ADAM SWIFT
PEABODY — A Gloucester developer is suing the city for nearly $2 million after his building was taken by eminent domain.
The city seized the landmark O’Shea Mansion earlier this year from Empire Design & Development to prevent its demolition and to pave the way for future development. The company was paid $425,000 for the property at 2 Washington St.
Michael Corsetti, the firm’s manager, declined to be interviewed. His attorney, Saugus attorney Peter Flynn, filed a complaint in Essex Superior Court seeking $1.8 million in damages from the city.
Flynn said he is also considering filing a civil rights claim against the city. The attorney pointed to several steps the city has taken that, he said, unfairly targeted Corsetti.
“I believe my client was denied his civil rights and not given due process,” said Flynn. “The city took specific steps with only this property in mind.”
Last fall, it appeared that the mansion was facing the wrecking ball. At that time, the city was ready to seize the property from Northeast Community Bank. But as that was about to happen, Empire Design purchased the property from the bank for $350,000, according to county records. The city proceeded with the taking, paying what city officials said was the market value. The property is assessed at $957,100.
Last week, the City Council approved the hiring of Boston attorney John Leonard to assist the city with the eminent domain case.
At the council meeting, Mayor Edward A. Bettencourt Jr. said he believes the city has a strong case.
“I feel good about the direction the city took,” said Bettencourt at the meeting. “I think the city is handling this properly and we want to mount a vigorous defense.”
Flynn disagreed that the city handled the matter properly. He points several actions against Corsetti when his client purchased the former mansion from the bank last fall. Those moves began when the property went under agreement in September, Flynn said.
He said two weeks before Empire was to buy the property, the City Council targeted the property and amended the demolition delay period to 365 days, up from 90 days, in historic districts.
“He was targeted because the city does not want the O’Shea mansion torn down, although my guy owns it,” Flynn said.
In addition, Flynn said the city raised the assessed value of the property after Corsetti’s purchase. In 2015, when Corsetti bought the mansion, Flynn said the property was assessed at $890,000. In 2016, the assessed value rose to $957,100.
While Corsetti was planning to demolish the mansion, Flynn said plans were underway for the type of mixed-use residential and restaurant development city officials have been calling for in the downtown.
The taking of the property on top of the “double whammy” of the city demolition ordinance and the increased property tax burden was a shock to his client, Flynn said.
“He was totally unaware there would be a taking,” said Flynn. “He had no idea he would be the target of eminent domain.”
Bettencourt declined comment.
Adam Swift can be reached at [email protected].
